Any suggestions on opening LLC - attorney or legalzoom?

Question

I am planning to open LLC before making next real estate purchase. Is it good to use attorney or simple enough to use Legalzoom or similar service?

Chris Levarek · Answer

@Nitin Mahajan If I could go back and do it again, I would first consult an attorney. Create a business plan and goals for your real estate ventures and then consult an attorney on entity creation. Look for an attorney specialized in real estate or business entity creation. They will not only advise you on best setup but ensure no gotchas are missed when setting up the operating agreement. I initially created my very first llc on my own by going to the county offices for a grand total of $85 dollars with the rush fee. This was fine initially but I ended up later paying the attorney fees to modify the llc and make it more sound structurally for my business model.

You can do it yourself or through the online services available just depends on what your goals are and how well you want to sleep at night ;), (especially if you will be partnering with others)...

Scott Smith · Answer

There's a few reasons I encourage people to shy away from just using the stock documents they sell on LegalZoom, this article can break those down a bit. For people setting up their first LLC I, as would be expected, encourage them to seek legal advice from an attorney. Main reason is that not all LLCs are created equal, and you need to be able to operate them correctly for the protection you expect - an attorney can help you navigate the process your first time around. After that people have a good idea of the process and whether they would prefer to move ahead solo or keep using another provider for the LLCs.

This isn't legal advice, just my opinion as a real estate investor.

Melanie Patterson · Answer

I used to work for a law firm and we dealt with business law on a daily basis. That being said, when I started my business I consulted my attorney friend and former co-worker and she actually offered to set everything up for me. The firm also does reviews for LegalZoom. In the long run you are better off using an attorney.

I use Tyler Berger at Fears Nachawati Law Firm for all my business needs.

Jenna Zebrowski · Answer

I think you're better getting an attorney that can fully and correctly  incorporate your entity instead of someone who is filling out a form,  who knows what they are missing.

Anyone can fill out a form. Your entity should be tailored to your individual investment situation.  I spend more time fixing situations with incorrectly or incompletely formed entities than I would if I had been able to form the entity correctly in the first place for my client.

Jenna Zebrowski

The Law Office of Jenna Zebrowski, PLLC

"Investor-Focused, Series LLC Friendly, Commercial Real Estate Savvy"

Kenneth Garrett · Answer

@Andrew Bang

It doesn’t make any sense to me to elect to form an LLC and take advantage of the asset protection if it’s not set up correct.  Piercing the veil of the LLC is easy to do if you don’t operate it correctly and set it up the right way from the beginning.  There are many thoughts from BP on this.  If you use legal zoom and then take it to an attorney you will be amazed at all things you did not cover.  Spend the small amount for an attorney and start correctly.  Check out Mark Kohler on you tube.  He has a number of videos on setting up your LLC.  Mark is an Attorney and CPA.

Good Luck.

Carl Fischer · Answer

@Nitin Mahajan

If you are short on funds and don’t have much to lose use legal zoom and then get the attorney to help clean it up when you have equity and assets.

If you have assets to lose I would start with the attorney up front.

Ryan Seib · Answer

Probably an attorney. This is an easy task you can toss to an attorney and see how well they do. If they do a good job you can use them again. If you toss it to legalzoom and you need a real attorney in the future you lost that opportunity earlier to find someone you like now that you are in need.

Andrew Bang · Answer

I've found Chase bank is great for LLC's, if you open a business account with them, they help you form the LLC.   They have all the forms and the reps have been trained to know where to file.

Any suggestions on opening LLC - attorney or legalzoom?

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